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of Raleigh during the cycle trough. However, Charlotte has appreciated a bit faster than Raleigh has in the last five years, gaining over 40 percent and recovering the larger loss from the recession. As of December 2019, the average three-bedroom, single-family rental home in Raleigh is $1,490. Charlotte comes in $80 less at $1,410. The one-year change for a three-bedroom detached SFR is up 3.3 percent, a $48 annual increase. In comparison, Winston-Salem is up 5.3 percent and Charlotte is up 6.5 percent for the last year. Over five years, SFR rentals in Raleigh have increased over 21 percent, Winston-Salem has increased 23 percent and Charlotte over 33 percent. Given the proximity to the Research Triangle, there are many pockets of growth opportunity in the northern submarkets from Morrisville, North Raleigh up to Wake Forest having relatively low five-year rental increases of only 15 percent-20 percent. Additionally the aforementioned submarkets boast a low rent-to-income ratio of 18 percent to 22 percent. The overall rent-to-income ratio of the Raleigh MSA is

the eighth lowest versus other major MSAs at 23.8 percent, and notably lower than the national average of over 32 percent. This metric shows that rental rates in the Raleigh MSA are low for the income potential of the population, and accommodative versus the national average. Combined with a rapidly growing, well-paying job market is a positive signal to investors that rental prices have plenty of room to appreciate further, while maintaining affordability. Comparatively, Charlotte’s lower median income produces a reasonable 27.3 percent rent-to-income ratio, while Winston-Salem is closer to the national average at 29.7 percent. Three-bedroom SFR rates vary between $1,200 to $1,800 in the MSA, with central Raleigh submarkets showing the highest rental rates in the metro.

SATURATION, VACANCY&YIELDS The Raleigh MSA rental saturation for single-family properties (renter-occupied properties versus total) comes in at a relatively low 16.45 percent. Charlotte and Winston-

RALEIGH RENTAL PRICE BY ZIPCODE

SFR2019 3BD AVG PRICE 1,300 2,700

Raleigh Rental Price By Zipcode

Sfr2019 3B

1,300

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84 | think realty magazine :: april 2020

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